CEO: No clear path to sustainable profitability' with hibu magazines

UPPER MERION — A decision to cease publication of hyper-local news magazines across the United States came when the company could not “see a clear path to near term, sustainable profitability,” CEO David Eckert wrote in an email to hibu employees Monday morning.

Calling his employees’ efforts “strong” and their products “superb,” Eckert noted in his email that similar actions have already been taken in the United Kingdom, Spain and Latin America.

An estimated 100 employees working on these magazines were given layoff notices Monday morning. More than 300 employees in total at hibu’s King of Prussia office were estimated to have been given notice yesterday, according to multiple employees. A company spokesman would not confirm these numbers.

The company best known for publishing Yellow Book will return its focus on the “still large and important print directory business,” as well as websites and digital directories, according to Eckert’s email.

Eckert also confirmed that the company, which is based out of the United Kingdom, will transfer print-based and digital work to its office in the Philippines and India.

“While these necessary actions were difficult, we are confident they represent a major step in the right direction towards our successful transformation,” Kevin Jasper, CEO (U.S.), wrote in a second email to employees Monday.

Email Regional Digital Manager Terrence Casey at tcasey@digitalfirstmeda.com or follow him on Twitter at @Terry_Casey.